Strong economic growth is something most of Europe can only dream of, yet most Asian economies are on course for just that this year.

The stellar growth will attract even more investors to look at the region, which has already been a firm favourite of global fund managers, thanks mainly to the economic powerhouse of China.

And its effect on the rest of the region is clear to see. Singapore is expected to record the highest economic growth in the region this year of up to 15 per cent. India is on course for 8.5 per cent growth, closely followed by Malaysia on 7 per cent.

Going swimmingly: The recently opened Marina Bay sands hotel is a sign of Singapore's prosperity

Indonesia, South Korea, Thailand and the Philippines are all expected to grow their economies by about 6 per cent in 2010.

The driving force behind these impressive figures is exports.
While the lion's share goes to China, the US and Europe are also big
buyers of Asian goods. But while Asia as a whole is powering ahead,
some are beginning to ask whether the growth is really so broadly
spread, or is the region just being dragged along by China?

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Jim Walker, managing director of Asianomics, an economic
research unit based in Hong Kong, says: 'Unfortunately, this is all
just one big correlated bet.

'Is the rest of the region capable of strong growth without
the China engine? At present the evidence is decidedly no. The region
has strong features but it is not a self-sustaining engine as it is so
heavily-reliant on exports.'

So before you reach for your cheque book, it is worth bearing
in mind the economic health of China as it still holds the key to the
fortunes of the Asia region.

The good news is it looks very healthy as it continues to
expand massively year on year. This month it overtook Japan as the
world's second-largest economy, behind the US.

China's GDP is on course to grow 10 per cent this year, up
from 9 per cent last year, despite Chinese authorities applying the
brakes to avoid overheating. And experts predict the economy will grow
by 9 per cent in 2011.

In fact, the correlation is pretty low, especially when it
comes to China. This is one reason why Aberdeen Asia Pacific fund
manager Hugh Young has such a small proportion of his cash in China. He
invests just 6 per cent of the fund there.

Aberdeen's Asia Pacific fund is up 35 per cent in the past year and 57 per cent over three years.

Singapore-based Young says: ' While China's economy has
impressed, its stock markets have not. The MSCI China index has fallen
40 per cent since 1992, despite the economy expanding around ten times.

'While many stakeholders in the economy, employees being the main ones, have prospered, the minority shareholders have not.'

This is why many investors opt for a regional fund rather than a
China-only one. Asia is a rich hunting ground for shrewd fund managers
who have many countries to choose from, from the tiger economiesof
Vietnam and Indonesia to the more mature markets of Australia and
Singapore.

First State's Asia Pacific Leaders is up 25 per cent in the
past year and 54 per cent over three years, while another recommended
fund is Fidelity South East Asia, up 28 per cent and 40 per cent in the
same periods.

Highlighting the strong factors for investing in Asia, Adrian
Lowcock at financial adviser Bestinvest says: 'The population is young
and growing, whilst in Europe we have an ageing middle class. Savings
levels are also higher in Asia coupled with lower levels of debt.

'The Asian economies are starting to demand goods and services, replacing the Western demand.'